What would you suggest?
Before working for the government for the last 11 years, I was self employed since 1982 and had my own corporation with a money purchase plan (MPP). I have approximately 350K in that pension plan, invested in mutual funds. Used to own individual stocks, but gave that up after the market tanked in 2000. I also have approximately 150K in IRAs, and a 407(b). Our expenses, plus some, can be covered by my pension(COLA'd) and SS alone. My wife has her own pension plan(COLA'd) and SS, which amounts to about $1,500 monthly.
My question is this: For discretionary spending, is it better to take out from the MPP before the IRAs, or does it matter? If I keel over, the pension plan assets go directly to my estate (since I am the sole owner of the corporation), whereas the IRAs have designated beneficiaries. I also have about 300K life insurance universal life still in force until 2012 (I am not adding any more premiums) in the pension plan, but the beneficiary is my corporation (key man life insurance - which I took just because I didn't want my kids and wife to be destitute, if I kicked the bucket early.) My DW is 63 and I'm 62. My kids are all independent.
Any thoughts? I sure would appreciate your input.